The Family Enterprise fund rose 3.9% in February, which was

slightly ahead of the benchmarks. Since the beginning of the

year the fund is up 6%, outpacing the Euromoney European

Smaller Companies index (+4.2%) and the Stoxx600 Europe

(+2.4%). We continue to benefit from the smaller companies

tailwind, but this last month we faced the headwind as once

again the market favoured “Growth” style situations over

“Value”. After a return to grace of Value stocks in the last 4

months of last year and the beginning of this year, Growth

stocks (particularly consumer staples and healthcare) had a

strong rally in February whilst Value stocks struggled to

remain flat. If European equity markets have made reasonable

gains, they are still very much lagging the continued Trump

bounce in the US (+5.7% YTD) and the euphoria in Asia

(+10.6%). Within Europe, the tensions have been mounting

ahead of crucial elections with stress visible in bond yield

spreads, which have in turn led to more buoyant equity

markets in Northern Europe whereas Southern European

equity markets have edged lower.

We have made quite a number of company visits over the last

two months and the messages we have been getting from

company managements have been quite encouraging. The

positive trends in business that were felt in the last quarter of

last year have continued into the first two months of this year.

So far the political worries that have been stealing the

headlines do not seem to have dented corporate confidence.

The fund’s strongest performance came from our investment in

Swedish natural cosmetics company Oriflame. We are

generally long term investors and our portfolios are known for

low rotation, but having taken profits on a substantial

proportion of our shares in the autumn last year we added once

again when the shares fell a very substantial 30% in November

on a slight ‘miss’ with their quarterly figures. We are strong

believers in the long term efficiency of the equity markets, but

this is a clear illustration that in the short term one can see

excessive reaction to good or bad news. With the publication

of full year figures in February showing a doubling in net

profits and the management giving an upbeat statement, the

share snapped back 39%, thus giving us a healthy profit on our

reinforced investment.

Our second best performance with a 22% rise came from

professional gardening equipment maker Emak, which is

owned by a group of families from Emilia-Romagna in Italy.

We have been building up a holding in the company as it is

seemingly on a very undemanding valuation with a single digit

PE ratio. After many meetings with the management, we feel

that there seems to be at last an engagement to improve

margins and reduce the level of debt on the balance sheet.

Despite weaker equity markets, our third best performer also

came from Southern Europe in the form of Fluidra, which is a

Spanish manufacturer and distributor of all the equipment

required to build, upgrade and maintain swimming pools.

From its origins as leader in Spain and France from its base in

Catalonia, the company has progressively become world leader

with dominant market shares in the core markets. The share

rose 21% as the company confirmed it is exiting its recovery

phase with an 85% rise in net profits in 2016.

Construction equipment maker Wacker Neuson is another

company that we felt had been unfairly sanctioned for short

term considerations. Our expectation is that the upcoming

publication of last year’s figures will show a stronger end to

the year and give an upbeat outlook for 2017. In the meantime,

the share rose 18% as the company unveiled a hidden asset in

the form of property holdings in Munich which it is planning

to sell for a substantial capital gain. Furthermore, with

substantial operations in the USA, including manufacturing

capacity, the company should be a beneficiary of the

substantial investments in infrastructure earmarked by the

Trump administration.

The retail chain focusing on senior citizens, Damartex, rose

11% on follow-on buying after the publication of an

improvement in sales at the end of the year. Our shares in the

Mytilineos family’s holding company Mytilineos continued

10% higher as the 15% rise in the Aluminium price will

further enhance the profitability of its subsidiary Aluminium of

Greece, which continues to be the lowest cost producer in

Europe. The holding company has launched a contested bid to

buy out the minority shareholders of its Metka construction

subsidiary. As it is paying in Mytilineos shares, this strong

performance increases the likelihood of the accretive deal

Investment Style / Objective: Value Equity Fund – The Family Enterprise Fund invests in small and medium sized European companies operating

established businesses, that are listed but still partly owned by family shareholders. Through their representation on the companies’ boards, these

shareholders provide continual oversight and make sure the executives manage the company in the interest of shareholders. The families’ interests are

aligned with ours as they tend to favour long term risk-averse strategies and the regular distribution of dividends. Within this universe, the fund selects

undervalued companies with attractive prospects using a rigorous investment process and in-depth fundamental research and analysis.

Management Team : Marc Saint John Webb, Philip Best

90.00

100.00

110.00

120.00

130.00

mai

16

juin

16

juil

16

août

16

sept

16

oct

16

no

v 1

6

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janv 1

7

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r 17

being finally successful.

On the downside, our shares in Groupe Gorgé fell 10% on the

publication of disappointing sales figures for 2016 showing a

slower trend in Q4. The slower sales came from the

Aeronautics and Robotics divisions, whilst the 3D Printing

business grew by 42%. Catering International, the specialist

caterer for extreme locations, fell 8% on profit taking after a

strong rise over the last few months. We have been building up

our holding here as, with a substantial proportion of business

looking after staff in the mining and oil industries, the

company is likely to start seeing a pick-up in business with the

recovery in the price of oil and other resources.

Sources : QUAERO CAPITAL SA, Euromoney PLC, data.cnbc.com

This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is no indication of

current or future performance, and the performance data do not take account of commissions and costs incurred on the issue and redemption of

units. Any decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and

figures here-in are valid on the date here-of. There is no obligation to update the figures here-in.

The Swiss prospectus, KIID, articles of association, annual and semi-annual reports in French and other information can be obtained for free from

the Swiss representative of the fund: Carnegie Fund Services S.A., 11, rue du Général-Dufour, CH-1204 Genève, Suisse, web : www.carnegie-fund-

services.ch. The Swiss paying agent is the Banque Cantonale de Genève, 17, quai de l’Ile, CH-1204 Genève, Suisse. The latest prices are available on

www.fundinfo.com. For further information please contact:

QUAERO CAPITAL (Luxembourg) SA, e-mail: info@quaerocapital.com, Tel. + 352 26 26 25 05

QUAERO CAPITAL SA, Geneva, e-mail: info@quaerocapital.com, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99

Subscription and redemption fees as mentioned in the prospectus can be waived upon identification of the investor either via the relevant form or direct

notice providing the INVESTING INSTITUTION’S NAME, the BANK ORIGINATING THE SUBSCRIPTION, the SUBSCRIPTION / REDEMPTION

AMOUNT and DATE to info@quaerocapital.com or by fax to +41 22 799 90 99.

All transactions which have been executed cannot be cancelled.

Investment Style / Objective: Value Equity Fund – The Family Enterprise Fund invests in small and medium sized European companies operating

established businesses, that are listed but still partly owned by family shareholders. Through their representation on the companies’ boards, these

shareholders provide continual oversight and make sure the executives manage the company in the interest of shareholders. The families’ interests are

aligned with ours as they tend to favour long term risk-averse strategies and the regular distribution of dividends. Within this universe, the fund selects

undervalued companies with attractive prospects using a rigorous investment process and in-depth fundamental research and analysis.

Management Team : Marc Saint John Webb, Philip Best

Source : QUAERO CAPITAL SA

Source : QUAERO CAPITAL SA

Source : QUAERO CAPITAL SA Source : QUAERO CAPITAL SA

Family owned & Family Managed 61%

Family owned with External Management

39%

Entrepreneurial / 1st Generation 16%

2nd Generation 50%

3rd Generation 11%

Transgenerational 23%

Legal Form Luxembourg Umbrella SICAV - Part I (UCITS) Subscription Notice 2 business days before valuation date (6 pm

Luxembourg time max)

Registration for Public Distribution Luxembourg, Switzerland, France, United Kingdom, Germany,

Spain, Singapore

Redemption Notice 5 business days before valuation date (4 pm

Luxembourg time max)

PEA Yes Minimum investment EUR 10’000

Investment Manager QUAERO CAPITAL SA Annual management fee 1.5%

Management Team Marc Saint John Webb, Philip Best Performance fee 12.5% over absolute 5% per annum subject to

High Water Mark

Administrator and custodian Pictet & Cie (Europe) SA Currency Class EUR

Auditor PriceWaterhouseCoopers, Luxembourg ISIN Code Class D EUR (Closed to new investments) LU0661743103 Legal Advisors Allen & Overy, Luxembourg ISIN Code Class A EUR LU0705182367 Geographical Region Europe ISIN Code Class A CHF LU1110203533

Inception date 31 December 2007 ISIN Code Class A USD LU1110203459

Reference Index Euromoney Smaller European Companies Index Institutional Classes Available on request

Subscription and Redemption Weekly

€

Source : QUAERO CAPITAL SA Source : QUAERO CAPITAL SA

Subscription and redemption fees as mentioned in the prospectus can be waived upon identification of the investor either via the relevant form or direct

notice providing the INVESTING INSTITUTION’S NAME, the BANK ORIGINATING THE SUBSCRIPTION, the SUBSCRIPTION / REDEMPTION

AMOUNT and DATE to info@quaerocapital.com or by fax to +41 22 799 90 99.

All transactions which have been executed cannot be cancelled.

This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is no indication of

current or future performance, and the performance data do not take account of commissions and costs incurred on the issue and redemption of

units. Any decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and

figures here-in are valid on the date here-of. There is no obligation to update the figures here-in.

The Swiss prospectus, KIID, articles of association, annual and semi-annual reports in French and other information can be obtained for free from

the Swiss representative of the fund: Carnegie Fund Services S.A., 11, rue du Général-Dufour, CH-1204 Genève, Suisse, web : www.carnegie-fund-

services.ch. The Swiss paying agent is the Banque Cantonale de Genève, 17, quai de l’Ile, CH-1204 Genève, Suisse. The latest prices are available on

www.fundinfo.com. For further information please contact:

QUAERO CAPITAL (Luxembourg) SA, e-mail: info@quaerocapital.com, Tel. + 352 26 26 25 05

QUAERO CAPITAL SA, Geneva, e-mail: info@quaerocapital.com, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99

Source : QUAERO CAPITAL SA